Leonardo_Kino_XL_How_to_Price_Cakes_and_Baked_Goods_for_Your_H_1
Whether you have a home bakery business or planning to start one, you should learn how to price your cakes and other baked products. Pricing can be a bit confusing at the start but once you get the concept it’s easier. Let me walk you through easy steps to assist you in determining the right price for your baked products. If you’re selling cakes, cookies, or any other baked goods, this guide will assist you in setting the right price that will allow you to make a profit.
Let’s begin with understanding the costs!
Step 1: Understand Your Costs
If you are to set your prices for cakes or any baked product, then you have to know your costs first. There are two main types of costs: the cost of the ingredients and the cost of the overheads. It is the cost of the materials you use in baking foods such as flour, sugar, butter, and eggs. Examples of overhead costs are light bills, water bills, ovens, and other utensils you use in baking. Both types of costs must be determined to find out the true cost of your products.
Step 2: How to Calculate Ingredient Costs